The earlier that you start planning for your retirement the better. Though it is easy to understand how people can get caught up in their day-to-day lives while striving for success there is a future that lies in wait at the end of your career. And the fact is that how well you plan for it will have a lot to do with how much you can get out of it. Research is key, and knowledge is power so the more aware you are about matters that are relevant to your retirement the better equipped you will be to prepare yourself for the time in your life when rest and relaxation take center stage.
Saving and investing wisely are core components, but it is also useful to understand the ins and outs of the Social Security system. Up until December 8th, 2010 a very useful avenue was provided by Social Security that allowed retirees to obtain what could essentially be described as an interest-free loan that could be utilized as investment capital over an eight year span of time.
There are those are not aware of the fact that you can accept a reduced Social Security benefit when you reach the age of 62. If you were born between 1943 and 1954 your full retirement age is 66. If you don’t retire until you reach the age of 70 you may receive what are called delayed retirement benefits that equate to an 8% per year increase over your full benefit. So what some people would do would be to accept the reduced benefit at age 62 and invest it until they reached the age of 70. They would then withdraw the original application, pay back what they had received and reapply for maximum Social Security benefits as a 70-year-old.
Under new rules that were passed by the Social Security Administration toward the end of the year retirees will no longer be able to implement this strategy. Now you can withdraw your application for Social Security just once during your lifetime and it can be done only within 12 months of the original filing.
Though this window has opened and closed, it does underscore the reason why it is a good idea to do your research and remain aware of the opportunities that wise use of your Social Security benefits can provide.